Department of Economics
270 Bay State Road
Boston, MA 02215
NBER Program Affiliations:
NBER Affiliation: Research Associate
Institutional Affiliation: Boston University
Information about this author at RePEc
NBER Working Papers and Publications
|May 2019||Multinational Expansion in Time and Space|
with Lindsay Oldenski, Natalia Ramondo: w25804
This paper studies the expansion patterns of the multinational enterprise (MNE) in time and space. Using a long panel of US MNEs, we document that: MNE affiliates grow by exporting to new markets; the activities of MNE affiliates persist during the affiliate's life, usually starting with sales to their host market and eventually expanding to export markets; and MNE affiliates' entry into new locations does not depend on the location of preexisting affiliates. Informed by these facts, we develop a multi-country quantitative dynamic model of the MNE that features heterogeneity in firm-level productivity, persistent aggregate shocks, and a rich structure of costs that affect MNE expansion. Importantly, MNE affiliates can decouple their locations of production and sales, and endogenously choos...
|October 2018||What are the Consequences of Global Banking for the International Transmission of Shocks? A Quantitative Analysis|
with José L. Fillat, Arthur V. Smith: w25203
The global financial crisis of 2008 was followed by a wave of regulatory reforms that affected large banks, especially those with a global presence. These reforms were reactive to the crisis.In this paper we propose a structural model of global banking that can be used proactively to perform counterfactual analysis on the effects of alternative regulatory policies. The structure of the model mimics the US regulatory framework and highlights the rganizational choices that banks face when entering a foreign market: branching versus subsidiarization. When calibrated to match moments from a sample of European banks, the model is able to replicate the response of the US banking sector to the European sovereign debt crisis. Our counterfactual analysis suggests that pervasive subsidiarization, hi...